How to Get and Ensure a Great Credit Score for Your All-Time Financial Freedom with 11 Top Tips Made Easy

Introduction: Why Credit Score is the Hidden Key to Financial Freedom

As a CERTIFIED FINANCIAL PLANNER® and financial coach, I meet clients every day who work hard, earn well—but struggle to get a simple home loan or credit card upgrade. The reason? A low credit score.

While your income, job title, or business status may impress banks, it’s your credit score that opens or closes the financial door.

According to the Mint article by Kanika Singh, a good credit score is a snapshot of your financial behaviour—and it can drastically influence your access to loans, interest rates, and long-term wealth building.

Let me walk you through 11 easy yet powerful tips that will help you build, maintain, and benefit from a strong credit score—because that’s your real financial passport.

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Tip 1: Know What a Credit Score Really Means

A credit score is a 3-digit number ranging from 300 to 900.

It reflects your borrowing behaviour, credit usage, repayment patterns, and reliability. Lenders use it to assess how safe it is to lend you money.

A score above 750 is considered excellent. Below 650, you’re in the caution zone.

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Tip 2: Understand Why It Matters More Than Ever

Your credit score determines:

• The interest rate you’re offered

• The loan-to-value ratio

• The loan tenure

• The loan amount itself

When I helped a young client in Gurugram apply for a ₹60 lakh home loan, his low score meant higher EMI and 15% more documentation. It cost him time, money, and sleep.

A good score simplifies everything.

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Tip 3: Don’t Max Out Your Credit Cards (Utilisation Ratio)

One of the most important hacks is this: keep your credit utilisation under 30% of the limit.

Also read: How to Attract More Money and Achieve Financial Freedom with a Powerful Mindset

Let’s say your credit limit is ₹1 lakh. Use only ₹30,000–₹40,000 consistently—even if you can pay off the full amount.

Lower utilisation signals good financial control and boosts your score automatically.

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Tip 4: Always Pay On Time—Even the Minimum Due

Timely repayment is the single biggest factor in determining your credit score.

Even one missed payment can pull your score down by 50–100 points. And late fees aren’t the only pain—it creates a long-term record of indiscipline.

Set auto-debits. Use alerts. Pay even the minimum if you’re stuck.

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Tip 5: Clear Settled and Closed Accounts from Reports

Your credit report may still show “settled” or “written off” even if you’ve closed the loan. This affects your score.

You need to raise a dispute or request the lender to mark it as “closed in good standing.”

One of my clients had a personal loan marked as “settled” though he had paid it off 4 years ago. After rectifying it with the bank and CIBIL, his score jumped 60 points.

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Tip 6: Avoid Too Many Credit Applications at Once

Every time you apply for a loan or card, the lender checks your credit file. That’s called a hard inquiry.

Too many inquiries in a short time signal desperation—and lenders hate that.

Instead, compare products online. Check eligibility first. Then apply selectively.

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Tip 7: Maintain a Balanced Credit Mix

A strong score comes not from just repaying loans—but having a balanced portfolio:

• A credit card or two

• A home or auto loan

• Maybe a short personal loan for profile diversity

This shows lenders that you can handle different types of credit responsibly.

Avoid only unsecured loans. Include long-term secured loans in your profile.

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Tip 8: Monitor Your Credit Report Every 3–6 Months

Most people don’t realize they can access their credit report for free—once a year per bureau (CIBIL, Experian, CRIF, Equifax).

Keep checking. Look for:

• Errors

• Old accounts still open

• Fraudulent entries

• High utilisation trends

One businesswoman I worked with found 2 active credit cards she had never applied for. We got them removed—and her score stabilized.

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Tip 9: Don’t Close Your Oldest Credit Accounts

Many people close their oldest credit cards thinking “less is better.”

But age of credit is a huge score booster.

The longer your relationship with credit, the better your score—assuming responsible use.

Instead of closing, downgrade or reduce usage. Keep the history alive.

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Tip 10: Be Cautious With BNPL & Fintech Credit

Buy Now, Pay Later (BNPL) and instant credit apps are growing fast in India. But so are defaults and score drops.

These tools create multiple new credit lines, confuse your repayment cycle, and increase inquiry load.

Stick to traditional credit unless you’re extremely disciplined. Convenience today shouldn’t cost your score tomorrow.

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Tip 11: What to Do If You Already Have a Low Score

Even if your score is below 600, it’s not the end of the road.

Some lenders use alternate methods like:

• Income-based risk assessment

• Loan guarantees

• Mortgage insurance (FLDG-backed)

You may pay a premium—but you can still qualify.

More importantly, rebuild your score with discipline. Within 12–18 months, you can repair and reboot your credit profile entirely.

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What a Strong Credit Score Can Do For You

Here’s what I’ve seen with my clients:

• Home loans approved faster, with fewer documents

• Interest rates 0.5%–1.5% lower

• Credit card limit upgrades

• Business loans with minimal collateral

• Lower EMIs and longer tenure options

Your credit score is your silent partner in every big financial decision. It’s invisible—but powerful.

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True Story: From Rejection to Approval in 10 Months

A couple I coached were denied a home loan due to the husband’s low score—582. They were devastated.

Together, we:

1. Paid off credit card overdues

2. Stopped applying for more credit

3. Got one “settled” loan marked “closed”

4. Increased savings and maintained a ₹50,000 monthly EMI on time

Within 10 months, his score hit 728. Their dream home was booked soon after.

The point? Scores are fixable—with intent and the right steps.

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Final Thoughts: Credit Score Is Your Financial Passport

Your job, salary, or even assets don’t matter as much to banks anymore. What matters is your credit history, discipline, and usage behaviour.

In today’s financial world:

• Credit is a tool

• Credit score is your report card

• And financial literacy is your compass

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Next Steps: How You Can Take Control Now

Here’s what I recommend:

1. Download your credit report today (CIBIL or CRIF)

2. List all active loans and cards

3. Track repayments and credit limits

4. Start a debt reduction plan

5. Join a money coaching session if needed

And if you’re serious about creating your own path to financial freedom…

Join my free 90-minute Financial Freedom Masterclass, where we cover:

• How to fix credit scores

• How to build a strong financial base

• How to start investing even if you feel stuck

Register now at: www.therichnessacademy.com

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“Credit is a tool. Used wisely, it unlocks your future. Misused, it traps you in your past.”
— Taresh Bhatia, CFP®

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